Philippines to Revise Tax Law for Electronic Cigarettes

Joey Salceda, Chair of the Albay House Committee, proposed that "logically, a wider range of vape flavors should also translate to higher consumption and therefore higher tax revenue for these products.

The committee will revise the provisions of the Tax Law, especially those related to the flavors of electronic cigarettes. Therefore, we will use our supervisory powers to monitor the progress of the event." Vice President Ralph Rico proposed the bill during the previous congress when he served as the temporary president of the Senate. He said that shifting to electronic cigarettes is "good public policy.

In the Senate debate, a current member of the Congress of Badanjas stated that the number of deaths in patients undergoing social therapy will decrease, along with a decrease in costs. This aligns with the direction of many countries, particularly those with developed economies.

Rodante Marcoleta, a member of the Sagip political party, is one of the main authors of the measure in the House of Representatives. He stated that the bill is a "gift to the Filipino people to improve their health and well-being.

With this law, we have a great opportunity to permanently eradicate the smoking epidemic, which claims nearly 100,000 Filipino smokers' lives each year. We believe that it's only a matter of time before we see a decline in our country's smoking rates," he said.

Former Congressman Alfredo Garbin Jr. of the Ako Bicol political party states that the new e-cigarette law will save the lives of all smokers, including young people.

We are concerned about the lives of all smokers.

Garbin stated that the law will specify a minimum age for purchasing cigarettes and e-cigarettes in order to provide better options for all adult smokers. Former Philippine Trade Secretary Ramon Lopez listed the benefits of attempting to regulate e-cigarette products or devices, which have ultimately failed. In response to concerns raised by opponents of such measures, he proposed that the Department of Trade and Industry (DTI) has the capability of regulating product standards.

In a Viber message, Lopez expressed the organization's support for the electronic cigarette bill during his tenure, as it allows the government to standardize and regulate the use and sale of electronic cigarette products. The bill also restricts the use of electronic cigarettes in designated areas, prohibits sales to minors, and imposes penalties for violators.

According to his research, he stated that using electronic cigarettes is the best option for quitting smoking because it steers people towards products with noticeably lower harm. He also listed the livelihood benefits for over two million people in the tobacco industry, as well as the government's advantages in tax revenue. If subjected to comprehensive regulation, he believes that the DTI has the authority to oversee electronic cigarette products and enforce standards. He stated that the agency is capable of regulating such products.

For over 30 years, the Philippine Department of Trade and Industry (DTI) has been responsible for regulating compliance with standards for 87 different products. The official noted that electronic cigarettes will only be included among the products currently covered, which include cement, steel, and appliances. The DTI will also collaborate with the US Food and Drug Administration and Health Department to ensure appropriate regulation that balances industry development, specifically in the areas of labeling and claims.

This is not a choice between public health and the interests of the tobacco industry. It is a choice to have a regulated electronic cigarette and vaping industry that can greatly reduce the harm or current state of smokers (which has not been solved in decades)." he said.

Meanwhile, supporters and authors of the Vape Bill are assuring the government that it will generate much-needed billions of dollars in funds for Marcos' social welfare and health plans. Former House Deputy Speaker Wes Gatchalian said that the Vaporized Nicotine Products (VNP) Act, which became law on July 25th last year, will "provide the much-needed economic boost for small businesses and the government." Gatchalian, who co-sponsored the measure, said, "The Act instituted key regulations that prioritize legitimate businesses, protect consumers, and could generate billions of dollars in revenue for the government." He is now the Mayor of Valenzuela City and estimates that the government has collected approximately PHP 15.5 billion in e-cigarette taxes since 2019. "From 2019, the government's consumption tax on these products increased from PHP 12.2 billion to PHP 15.3 billion, or about 25%," he said.

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